Navigating Startup Tech Winter

Since the past 2 years, there have been winters that challenged startups or VC’s for building sustainable business. For instance, about 283.000 people were laid off from tech companies between January 1, 2022 and March 2, 2023. In addition, in 2022 the global venture ecosystem dropped by 35% from $638.4B to $415.1B. This condition has pushed, either startups or VC’s, to be wiser and be more excellent at calculation to prevent unnecessary capital loss.

While the winds blow hard or slow, it can be down to two factors that cause this winter to happen. Firstly, macroeconomic factors, such as Covid-19 pandemic, global inflation, and the geopolitics climate due to the war between Russia and Ukraine. Secondly, internal management, such as excessive investment and recruitment, high budget expenses during pandemic, and suboptimal work result. In order to weather the coming storm and create sustainable business, here are the approaches that every startup can adopt.    

Strategies for revenue

Whether it's creating a profitable product or offering a unique service, incorporating sustainable business can be the initiative force behind your goals. During winter times, investors are shifting their focus towards revenue rather than growth. This will lead startups to seek out cost-cutting strategies. People, marketing, and cloud infrastructure are some of the biggest expenses for new startups, and new seekers need to encourage themself to use cloud services efficiently. Make sure to prepare your best strategies to gain revenue, while minimizing costs so as not to exceed the budget.

Open innovation and knowledge sharing

Despite startups striving to save cost, they should still pursue their goals to grow and learn. It's necessary to prepare your team with the most in-depth knowledge of digital skills. So, instead of still hesitating and tending to be close-minded to protect your company, you should embrace every opportunity ahead. For instance, you can build your connections in the ecosystems, provide avenues for peer networking and learning, or facilitate connections with potential investors and customers. 

Pivot & Improve Business Model

In the world of startups, pivots are no small feat; they carry immense risks. Only if you truly believe that a pivot can save the day and is the best way forward, then you can embark on a transformative journey. This transformation will lead you either to begin pivoting product as it expands in the market or pivoting the business model for greater profitability, it all may demand a profound transformation. 

Build synergistic collaboration

Initiating collaborations can allow you to gain new insights and perspectives, access new markets, or establish valuable partnerships. Attend entrepreneurial meetups and summits, involve yourself in digital communities, and actively seek out opportunities to collaborate with fellow innovators. So, it's time to invest in upskilling and building a culture of collaboration. Through the Telkomsel digital ecosystem, you can achieve your company’s priority, whether you are a newcomer in the field or an already growing company. Telkomsel presents T-Connext that will provide your preferences. This will lead you to hub with a corporate incubator that focuses on social impact, an accelerator program that focuses more on business, or pre-series to series startups. So, reach us and see how this opportunity can fulfill your goals.